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Decree Law No. 27-B/2020


Publication: Republic Diary No. 118/2020, Series I of 2020-06-19
  • Issuer: Presidency of the Council of Ministers
  • Diploma Type: Decree Law
  • Number: 27-B/2020
  • Pages: 23-(4) a 23-(9)

Summary in plain english

What is it?

This decree-law provides for the extension of the scheme of extraordinary support for the maintenance of employment contracts in situations of business crisis.

It also creates a stabilisation supplement for workers with basic pay equal to or less than twice the guaranteed minimum monthly wage (RMMG) and also creates an extraordinary incentive for the normalisation of business activity.

Given the public health emergency of international scope, declared by the World Health Organization on 30 January 2020, as well as the classification, on 11 March 2020, of the COVID-19 disease as a pandemic, the Government has been approving a set of extraordinary and urgent measures in several matters.

What is going to change?

Companies that have not made use of the extraordinary support to maintain their employment contracts in a business crisis may submit their initial applications with effect until 30 June 2020 and may extend them up to a maximum of three months.

Companies and establishments that have been legally closed due to the COVID-19 disease pandemic may access or retain the right to extraordinary support for employment contract maintenance in a business crisis.

Companies that have made use of extraordinary support to maintain an employment contract in a business crisis and have reached the renewal limit may see this support extended until 31 July 2020.

Workers which basic pay in February 2020 was equal to or less than twice the RMMG and who, between the months of April and June, have been covered for at least one full calendar month by the support for maintaining the employment contract or by temporarily reducing the normal working period or suspending the contract are entitled to the stabilisation supplement.

Stabilization supplement - the difference between the declared basic pay for the month of February 2020 and the full calendar month in which the worker was covered by one of those support measures.

Employers who have benefited from the extraordinary support for maintaining an employment contract are entitled to an extraordinary incentive to normalise business activity and may not terminate employment contracts under the terms of collective dismissal, dismissal for termination of employment or dismissal for maladjustment.

What advantages does it bring?

This decree-law guarantees stabilisation in the economic and social spheres.

It also allows companies to resume their normal activities and consequently maintain employability through extraordinary incentives.

When does it enter into force?

This decree-law entered into force on 20 June 2020 and takes effects until 31 December 2020.

Original Version

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CONSOLIDATED LEGISLATION

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